Non-Farm Payroll numbers came out at 113000 in September and the unemployment rate fell to 7.8%. Gold initially dropped as everyone thought that the decline in the unemployment rate was positive, but actually it is not. Peter Schiff mentions why in his update here.
As I mentioned before here, the non-farm payroll numbers are more important than the unemployment numbers. Especially when government is underreporting on the unemployment numbers as discouraged workers and part-time workers aren't counted in the unemployment numbers.
To get a higher employment in the U.S. industry we need to have at least 200000 for the non-farm payroll number, which we didn't get at all. We only got 113000, which is only half of the goal we need to achieve.
So the reality is: the unemployment rate went up, even though the government statistics say differently. The reason being that the population is growing faster than people are getting jobs.
|Chart 1: Non-farm payroll|